Sanofi plans to change hospital drug-discount program, WSJ reports
Adds details from report in paragraphs 4,5 and background in paragraphs 6-9
Nov 22 (Reuters) -French drugmaker Sanofi SASY.PA plans to change its policy on how it gives discounts to certain U.S. hospitals that serve low-income and uninsured patients, the Wall Street Journal reported on Friday.
Sanofi plans to send a letter, reviewed by WSJ, to hospitals outlining its new model on Friday, the report said, citing people familiar with the matter.
A company spokesperson said that Sanofi had no comment at this time.
Sanofi's new plan will take effect early next year and will require institutions to provide pharmacy and medical claims information, such as the drug's order or a patient's hospital visit, before receiving federally mandated discounts under a program known as 340B, according to the report.
Under Sanofi's new plan, certain hospitals covered by the 340B program would order drugs at full price from a wholesaler, the report added.
Last week, drugmakers Eli Lilly LLY.N and Johnson&Johnson JNJ.N filed cases centered around the 340B program against U.S. federal health agencies.
Lilly sued the Health Resources and Services Administration (HRSA) over allegedly blocking the company's plan to change the way it offers drug discounts to hospitals. Lilly said that its program is designed to pay cash directly to 340B covered entities every week.
J&J, which sued the Health and Human Services Department, accuses the agency of blocking its plan to sell its psoriasis treatment Stelara and blood thinner Xarelto to some hospitals at full price before applying drug rebates.
The 340B program, in which drugmakers provide discounts to eligible healthcare providers that serve low-income populations, has been the focus of broad legal scrutiny over the years. Drugmakers must participate in the program to receive funds from government health insurance programs like Medicare and Medicaid.
Reporting by Bhanvi Satija in Bengaluru; Editing by Alan Barona
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
